After surrendering in World War II, Japan was ruled by a military occupation of the allied powers, the SCAP (Supreme Commander for the Allied Powers), headed by American General Douglas MacArthur.  Major institutional changes were forced on Japan by General MacArthur.  The Occupation was concluded by a peace treaty in 1951, actually ended March 1952.
(MacArthur obit)

1. De Militarization.  Make sure Japan does not threaten its neighbors again.

• Destroy military equipment, ships, tanks, etc.
• War Crimes trials, 7 leaders were executed
• U.S. military bases in Japan
• purposed evolved over time: control Japan > protect Japan > oriented towards USSR cold war needs.
• Give up Okinawa to US (returned 1972 but military bases retained)
• Kuriel Islands given to the Soviet Union > Russia
• Constitution: Article 9: Japan will not have military forces, but can have "self defense forces."
• military expenses limited to around 1% GNP

• Theory that democracy would prevent future militarism
• replaced Bismarck authoritarian model with British Parliamentary model + U.S. influence
• retain Emperor, but as a symbol of national unity only.
• Parliamentary system
• diet (parliament), Prime Minister, Cabinet, House of Councilors
• allow women to vote
• Attempt to add U.S. ideas:
• judicial supremacy
• decentralization, local government (for schools, police)
• women given full legal equality

• try to disband the zaibatsu (holding company combining banking ex-im trading, manufacturing)
• (Keiretsu appears -- very similar but more informal)
• Land reform, end tenancy, reduce appeal of military
• (ideas of Wolf Ladejinsky, U.S. Dept. of Ag)
• support labor movement, unions
• peaceful foreign trade: It is cheaper to buy resources than to conquer/colonize them
• sugar, tropical fruits from Taiwan
• coal, steel, soy beans from Manchuria
• oil from Indonesia
• make money from exports utilizing human resources (labor, engineering)

• Japan has very sensitive relations with the countries that Japan attacked, occupied, esp: China, Korea, Philippines, Indonesia
• periodic text book controversy.  Asia claims Japan "covers up" its past in high school history texts.
• Chinese students demonstrate periodically
• Japanese Prime Minister Tanaka stoned in Indonesia, 1974
• Japan keeps military forces very small, very reluctant to use troops in Asia
• eg: UN peacekeeping in Cambodia
• This may be changing:
• Japan wants permanent seat on Security Council
• Response to Korean missile
• U.S. asks Japan to adopt more responsibilities